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Japanese - Thai Trade Agreement - JTEPA - Effects on Motorcycle Prices

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^ Agree that only Honda is consistently applying the new taxes to their prices here. Possibly also Suzuki with the V-Strom. Yamaha hasn't been doing it - then again nothing prevents them from starting any time they want.

Now if only they built any interesting bikes ;) even the CBR1000 flagship model... looks like a bike from 10 years ago and is restricted to Japanese specs to boot...

Ducati is imported from Italy so FTA doesn't apply. That said I'm pretty sure Ducati is allowing for a generous profit on their bikes... it's a Ducati after all. The market proves them right too. They added a few farkles to the Monster 796 and are now selling it at prices very close to the Hypermotard, and are still moving loads of bikes.

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  • I found this info on customs.go.th. Seems like the bikes are exposed to 16.36% duty which says we are in the 8th year. I assume that this list might not have been updated so what we can hope is abou

  • taichiplanet
    taichiplanet

    looking at the thai customs website there seems to be the duty + excise tax + interior tax + VAT not sure if all these taxes apply to a company imported new bike (as opposed to a personal import -

  • Okay, bit busy at the moment but I'll do this for you. Let's take the CIF cost of a Japanese bike at 400,000 Baht. 1. Add import tax which is from LL2's figures 10.91 % 400,000 * 10.91% = 43,640 Ba

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^ Agree that only Honda is consistently applying the new taxes to their prices here. Possibly also Suzuki with the V-Strom. Yamaha hasn't been doing it - then again nothing prevents them from starting any time they want.

Now if only they built any interesting bikes wink.png even the CBR1000 flagship model... looks like a bike from 10 years ago and is restricted to Japanese specs to boot...

Ducati is imported from Italy so FTA doesn't apply. That said I'm pretty sure Ducati is allowing for a generous profit on their bikes... it's a Ducati after all. The market proves them right too. They added a few farkles to the Monster 796 and are now selling it at prices very close to the Hypermotard, and are still moving loads of bikes.

dont they import 899 panigale from Japan?

derestricting cbr1000rr is costing around 50 to 60 k thb and although it is updated 5 years ago still it is a pretty good bullet proof bike for that price and still better and more reliable than many liter bikes around it is a total blast and you have Bigwing for the service which is another plus.

so next year, we can expect abother 5 percent decrease on cbr1000r price and during 2017 we get another 5 percent decrease. so cbr1000r will be around 570 k thb during 2017.

Ducati is imported from Italy so FTA doesn't apply. That said I'm pretty sure Ducati is allowing for a generous profit on their bikes... it's a Ducati after all.

Ducati (some models) at manufactured in Thailand, at least to the extent necessary for duty purposes.

http://www.thaivisa.com/forum/topic/782734-ducati-thailand-manufacturing-video-info-dec-2-2014/

Okay, bit busy at the moment but I'll do this for you.

Let's take the CIF cost of a Japanese bike at 400,000 Baht.

1. Add import tax which is from LL2's figures 10.91 %

400,000 * 10.91% = 43,640 Baht. (Actually I suspect the import tax may be 10.91% of the pre - FTA rate but let's go with a flat 10.91%)

You now have a total of 443,640 Baht.

2. Excise duty for IMPORTS using a multiplier coefficient of 10 (bikes 500 - 1000 cc) gives a percentage of 11.24%

Excise Duty = 443,640 * 11.24% = 49,865 Baht

3. Add the extra 10% Ministry of Interior Tax to Excise Duty = 49865 + 4987 = 54851 Baht

Add that in 443,640 + 54851 = 498,491 Baht.

4. Add VAT @ 7%

498,491 * 1.07 = 533, 386 Baht.

This represents a total tax increase of 133,386 Baht or approximately 33%

wai.gif

  • Author

Okay, bit busy at the moment but I'll do this for you.

Let's take the CIF cost of a Japanese bike at 400,000 Baht.

1. Add import tax which is from LL2's figures 10.91 %

400,000 * 10.91% = 43,640 Baht. (Actually I suspect the import tax may be 10.91% of the pre - FTA rate but let's go with a flat 10.91%)

You now have a total of 443,640 Baht.

2. Excise duty for IMPORTS using a multiplier coefficient of 10 (bikes 500 - 1000 cc) gives a percentage of 11.24%

Excise Duty = 443,640 * 11.24% = 49,865 Baht

3. Add the extra 10% Ministry of Interior Tax to Excise Duty = 49865 + 4987 = 54851 Baht

Add that in 443,640 + 54851 = 498,491 Baht.

4. Add VAT @ 7%

498,491 * 1.07 = 533, 386 Baht.

This represents a total tax increase of 133,386 Baht or approximately 33%

wai.gif

thanks a lot man. you are great.

excise tax is just 11,24 percent, huh? lower than i expected.

then according to your calculations, bigwing makes around 70 k - 80 k thb from a cbr1000rr after shipping and expenses and i am sure they buy the bikes from japan cheaper than the retail prices that we base for our calculations.

so with the current price structuring of bigwing cheapest we can see cbr1000rr here is a price of slightly less than 600 k thb then during 2017 when 'JTEPA' drops the import duty to 0 % . if our base percentages and calculation formula is true of course.

LL2,

There are differing rates of excise tax. Prior to 2013 (?) there were all pretty low on motorbikes. However excise duty for larger bikes was increased.

FTA's have brought down import duty for bikes. This is still, 80% (!!!!!) of CIF value for non-FTA countries. So import a bike from the US and cost will approximately double on the dockside.

The latest info on excise duty rates for bikes are as follows.

Made in Thailand

up to 150 cc (4 stroke) 3%

up to 150 cc (2 stroke) 5% (but I don't think any are made any more)

150 -500 cc 5%

501 -1000 cc 10%

1001 cc or more 20%

Imported The excise duties are all increased using an exponential formula.

3% becomes 3.10%

5% becomes 5.29%

10% becomes 11.24%

20% becomes 25.64%

As with anywhere else dealers can charge what they like, the more competition, the more pressure to keep their prices low. However, in Thailand they don't seem to honor the prices they quote especially with farangs and they are quite surprised when you walk away, putting it down to "farang being awkward",

On small bikes with so much competition, the profits are very low and often the the profit is made on the credit side, on bigger bike, with less competition the profits are higher. A year ago my local Honda dealer was charging 20,000 over list for a CBR250 and I couldn't find another in KK, now there is another dealer quoting the list of 126k for the CB300, he is only 2k over list.

So for the best price go to an area where there are lots for dealers, that way you should get a better price and when they try to increase it, you have an alternative.

dont they import 899 panigale from Japan?

No, Japan imports the 899 from Thailand, there no Ducati factory in Japan. Only Italy and Thailand.

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